THE BROOKLYN PARK ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF BROOKLYN PARK NOVEMBER 18, 2013 MEETING MINUTES

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1 THE BROOKLYN PARK ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF BROOKLYN PARK NOVEMBER 18, 2013 MEETING MINUTES I. ORGANIZATIONAL BUSINESS: 1. CALL TO ORDER: President Jeffrey Lunde (6:00 p.m.) ROLL CALL PRESENT: President Jeffrey Lunde, Vice President Peter Crema (arrived 6:32 p.m.), Commissioners Rich Gates, John Jordan, Bob Mata and Michael Trepanier, Acting Executive Director Michael Sable, EDA Attorney Melissa Manderschied and EDA Secretary Theresa Freund. ABSENT/EXCUSED: Treasurer Elizabeth Knight. 2. PUBLIC COMMENT AND RESPONSE: None. 3. APPROVAL OF AGENDA MOTION GATES SECOND JORDAN TO APPROVE THE AGENDA. UNANIMOUSLY. MOTION PASSED II. STATUTORY BUSINESS: 4. CONSENT: 4.0 MOTION GATES, SECOND MATA, TO APPROVE THE FOLLOWING ADMINISTRATIVE CONSENT ITEMS: 4.1 Consider Approving EDA Meeting Minutes MOTION GATES, SECOND JORDAN TO APPROVE THE OCTOBER 28, 2013 EDA MEETING MINUTES. UPON A CALL OF THE ROLL THE VOTE WAS AS FOLLOWS: YES: GATES, JORDAN, LUNDE, MATA AND TREPANIER. NO: NONE. ABSENT: CREMA AND KNIGHT. MOTION CARRIES. 4.2 Consider Terminating Contract for Private Development and Decertifying Tax Increment Financing District #23 MOTION GATES, SECOND JORDAN TO WAIVE THE READING AND ADOPT RESOLUTION TERMINATING CONTRACT FOR PRIVATE DEVELOPMENT AND DECERTIFYING TAX INCREMENT FINANCING DISTRICT NO Consider Approving the Execution of Third Party Agreements between the EDA and the City of Brooklyn Park Directing the EDA to Carry Out the Front Yard Fix Up Fund Grant Program Using FY2013 Community Development Block Grant Funds

2 Page 2 MOTION GATES, SECOND JORDAN, TO WAIVE THE READING AND ADOPT RESOLUTION # APPROVING THE EXECUTION OF THIRD PARTY AGREEMENTS BETWEEN THE EDA AND THE CITY OF BROOKLYN PARK DIRECTING THE EDA TO CARRY OUT THE FRONT YARD FIX UP FUND GRANT PROGRAM USING FY2013 COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS. 4.4 Consider Terminating the Contract for Private Development with Old Brooklyn Park, LLC. MOTION GATES, SECOND JORDAN TO WAIVE THE READING AND ADOPT RESOLUTION # TERMINATING THE CONTRACT FOR PRIVATE DEVELOPMENT WITH OLD BROOKLYN PARK, LLC AS TO PARCELS B AND C. 4.5 Consider Calling for a Special EDA Meeting on Monday, November 25 at Approximately 7:00 pm MOTION GATES, SECOND JORDAN CONSIDER CALLING FOR A SPECIAL EDA MEETING ON MONDAY, NOVEMBER 25 AT APPROXIMATELY 7:00 PM FOR A PUBLIC HEARING. MOTIONS PASSED UNANIMOUSLY. 5. PUBLIC HEARINGS: 5.1 None. 6. GENERAL ACTION ITEMS: 6.1 Consider Approving the 2014 EDA Budget. Michael Sable presented the proposed budgets. The EDA is required annually to approve a budget and that budget is then submitted to the City Council where it is modified or amended at the Council s will. Mr. Sable went over: The EDA does follow a two year budget cycle similar to the City Council. The proposed budget is consistent with previous proposals. The budget is used primary for operations of the EDA, staff and related expenses, development related costs, neighborhood and housing preservation, direct development costs, maintains flexibility to respond to market demands, city initiatives and development opportunities.

3 Page 3 The EDA has three primary budget sources: HRA levy, EDA levy and other revenues from developer fee payments, committed grant funds, interest from loan repayments and investment income. The EDA does maintain some specific initiatives: Housing Rehab Loan Fund, Foreclosure Loan Fund, Townhome Loan Fund, Target Abatement Fund and Huntington Pointe Fund. The proposed General Fund Revenue is consistent with the previous 2013 budget. Note in the packet for the Council action later this evening, the EDA s revenue is projected to decrease by $300,000. If the Council so desires, the action calls for reducing the EDA levy by $300,000. Commissioner Trepanier stated with all that is going to be generated along TH610 over the next few years with Target and TH610 now being extended and completed we are going to need money to work with through the EDA. He asked if the proposal for is sufficient? Mr. Sable responded that the dollars that are set aside for this proposed budget are sufficient. However, we also know that the City Council has the right to change that number to a lower figure, if it deems it appropriate based on the levy authority that it maintains. Mr. Sable pointed out changes to the expenditures from the 2013 amended budget and then going forward commissioners will notice that the numbers are down. This is a deliberate part of the budget strategy for the EDA to minimize expenses wherever possible but still be flexible in meeting the demands of the market. The budget as it is proposed provides the EDA with the ability to do what it needs to do in terms of delivering high quality service. Mr. Sable stated that the State of Minnesota has pledged $131 million to complete the construction of TH610 to Interstate 94 with construction beginning in This is the final piece of what is commonly known as the crosstown of the northwest metro. This is a signature roadway that will benefit Brooklyn Park and our neighboring communities. It stands to reason we will be the primary beneficiary of this expansion. It will only make attracting companies like Baxter, Olympus, Target and others easier because the network of transportation system will be complete, it will be well positioned and well poised to really capture the value this community has to offer. The EDA is going to be a strong partner in working with the development community and with the commissioners.

4 Page 4 The City of Brooklyn Park has led the large suburbs in the area in job growth for the last ten economic quarters. Hennepin County s Job growth has gone up 4% over that time and the City of Brooklyn Park has gone up over 12%. So we are gaining a larger share of the pie which is important metric for the EDA going forward as our tax capacity per capita is anticipated to grow and that is a good measure for how we are doing regionally. Those job figures don t include Baxter, Olympus and Target. Commissioner Mata asked Mr. Sable what an expense called other charges for $53,660 listed on the budget summary is. Mr. Sable responded that the category includes bank fees, credit card fees, interest expense, developer payments, printing and binding, advertising and marketing and legal notices. So it is primarily fees that we would pay companies to do transactions or printing and binding advertising for the EDA. Mr. Sable added that one perfect example of where this money is spent would be the Business Forward Initiative. All of the promotions, marketing and packet materials come out of this fund as does the real estate forum that we host annually for area realtors. Commissioner Mata asked Mr. Sable about reducing the general property taxes. Mr. Sable responded that the EDA proposes a budget and then the City Council acts as the levy authority for doing that. MOTION TREPANIER, SECOND GATES TO WAIVE THE READING AND ADOPT RESOLUTION APPROVING THE 2014 ECONOMIC DEVELOPMENT AUTHORITY BUDGET. UPON A CALL OF THE ROLL THE VOTE WAS AS FOLLOWS: YES: GATES, LUNDE AND TREPANIER. NO: JORDAN & MATA. ABSENT: CREMA AND KNIGHT. MOTION CARRIES. III. DISCUSSION: 7. DISCUSSION ITEMS: 7.1 Status Update (Commissioner Crema arrived at 6:32 p.m.) Michael Sable reported the status update outlines some of the events and activities that have taken place since the EDA last met. He highlighted the following two items: Business Developer Amy Baldwin attended the 7 th Minnesota Commercial Association of Real Estate annual expo. The program was titled Opening Up the Business Vaults: Insider Info from Four Corporate Playbooks. She volunteered in the booth hosted by the Economic Development Association of Minnesota.

5 Page 5 The Connections at Shingle Creek Project is meeting tomorrow, November 19 th at 7:00 p.m. The City, designers from Damon Farber and RSP Dreambox will be hosting a community meeting at Brooklyn Junior High in the media center to talk about the connections to create the missing pedestrian link between Noble Avenue / Brooklyn Junior High School and Regent Avenue. For more information people can visit the city s website at creekconnections/. 7.2 Foreclosure Recovery Update Kim Berggren reported the update includes a table that indicates the spending progress and the progress that has been made on rehabilitating homes over the last five years. About 90% of the foreclosure recovery funds have been spent. It took the city five years to get to the 90% mark so we do anticipate continuing this work for the next year or so. Commissioner Trepanier asked how much of the $8.4 million being used is from grant money. Ms. Berggren reported that all of the sources of funds listed on the table in the report are funds from outside the organization except for the EDA s TIF housing funds. Commissioner Trepanier stated so of the $8.4 million, $7.4 million were grant dollars. Ms. Berggren replied that is correct. The NSP money is from the federal government and the CRV money is from state. 7.3 EDA Topics Update Signature Development Task Force. Cindy Sherman stated since staff last reported to commissioners in October, the task force has continued to meet. A speaker came and talked to the group about: multifamily housing and other criteria, what people are looking for, what the market demands are, what we are seeing from the development community locally and the types of development that are being proposed and being built around the metropolitan area. The memo that was included in your packet includes the task force purpose and function as a reminder of what the task force work has been and what they are working towards in making a recommendation to the City Council.

6 Page Community Branding Update Kimberly Berggren reported at the October 28 th EDA meeting commissioners approved staff to work with Carmichael Lynch Spong on a branding effort. It was suggested that staff bring forward a monthly update as community branding is getting media coverage and is of interest to the EDA. The monthly update will be used to make sure that everyone understands what is happening with this project. This is the first update and not a lot has been accomplished yet, as it has only been a few weeks. We have moved forward in developing the contract and really getting clear on what the scope of work is with the consultant. They are starting the discovery process and that process is really the research part. So they are reviewing: what we already do, existing communication and a lot of information we have already gathered from the community so that they are not repeating any of that work. As critical stakeholders the commissioners will be interviewed one on one with the Carmichael Lynch Spong team. They want your input on the process right at the very beginning. Commissioners will be contacted to set up those interviews. IV. ADJOURNMENT Meeting adjourned at 6:37 p.m. Respectfully Submitted EDA Secretary Theresa Freund